Additional fixed amount IRS tax witholding a red flag?

[dizyblond]

Confirmed in Calif in June. I had 99 allowances for federal lax until then to make ends meet, but since the confirmation adjusted to zero witholdings to fix things. I am currently paying 500 a month at $25% payback. We are pro-se (representing ourselves, no attorney).

I just did my estimated taxes for 2007 and it looks like I will owe about $4,500.

My objectives: Stay under the trustee radar by not incurring more than $250 in debt.
(The tax due would put me on the radar. This whole bk ordeal truly stresses me out and just want to make my monthly payment and not think about it!)

My options:
1) Adjust my paycheck withholdings thru the end of the year to cover the $4,500 (they would withhold about $1500 a month -- a family member said they would give me the cash to make up for it).
** Question: Would this additional withholding be a red flag even though I would not owe takes over $250?


2) Do nothing -- the IRS will probably file a claim and the trustee will haul me in and require me to pay more a month -- we don't have more, but I know they will find a way since we are not at 100% payback. Our financial situation is about the same, but I have every confidence they WILL want more. I don't want to have to go through compiling all my records again either. I also don't want to get my case dismissed.

Any advice? (Other than "get an attorney"? We a pro se, but is has been working out ok so far.)

[aa06a47]

I would adjust the payroll deduction to try and make it as close as possible. You really don't want to miss by that much (4500) as you will probably have to pay penalty's.

I'm not a bk tax expert..but I don't believe they can actually file a claim on your current bankruptcy.

I hope your payment plan showed actual tax liability vs what you showed as coming out of your check.

[CindyLou]

did you change to single and zero? This would take out the MAX amount. Personally, I don't think the additional amount requested would ever be noticed by the trustee. He isn't going to see your W-4 anyway...just your tax return which will show the end product. You could also send in extra money in the form of estimated taxes before the year ends as another option.